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EUR Market Wrap

CREDIT PRE-MARKET


  • 2y/10y bunds closed +1bp/+4bp to give a WoW move of -4bp/-3bp – DM team flagged focus on ECB commentary related to uncertainty around the growth outlook and the global IT outage. ECB review: https://roar-assets-auto.rbl.ms/files/65354/ECB%20....
  • Main/XO were +0.5bp/+3bp at 54.4bp/297bp to give WoW moves of +3bp/+14bp while €IG/€HY was -0.3bp/-3bp for a WoW move of +1.3bp/+4bp. +10yr IG spreads underperformed the short-end by close to 1.5bp on the week (and by 16bp YTD) while Transport was the only sector tighter WoW while Comms, Tech and Utils all widened by over 2bp.
  • SXXP was -0.8% with all sectors in the red while SPX was -0.7% to give WoW moves of -2.7% and -2% with Banks, Personal Care and Telcos eeking out marginal WoW gains in SXXP while Tech (-9%) and Basic Resources (-7%) underperformed. Notable €IG WoW movers included VF Corp +19%, Warner Bros +17%, Lanxess +10% Roche +9%, Telia +8%, Scor SE -21%, ASML -17%, Kojamo -12%, Sartorius -11%, Autoliv -11%, Dell -10%, Forvia -10%, Eli Lilly -10%.
  • SX5E futures are +0.5% while SPX futures are +0.2% - Early sentiment was dominated by news of Biden dropping out of the US Presidential election race. He endorsed VP Kamala Harris as his replacement. The UST curve has flattened, reversing some of the curve steepening that has occurred as a part of the "Trump Trade", although it should be noted that betting markets have not really swung back in favour of the Democrats.
  • There are few events today with only the US Chicago Fed June index and May German retail sales the main releases.

GMT/Local

Impact

Country

Event

1530/1130

*

US

US Treasury Auction Result for 26 Week Bill

1530/1130

*

US

US Treasury Auction Result for 13 Week Bill

0700/0900

EU

ECB's Lane at ECB/IMF conference in Frankfurt

0900/1000

*

UK

Index Linked Gilt Outright Auction Result

1100/0700

***

TR

Turkey Benchmark Rate

1230/0830

**

US

Philadelphia Fed Nonmanufacturing Index

1255/0855

**

US

Redbook Retail Sales Index

1400/1600

**

EU

Consumer Confidence Indicator (p)

1400/1000

***

US

NAR existing home sales

1400/1000

**

US

Richmond Fed Survey

1530/1130

*

US

US Treasury Auction Result for Cash Management Bill

1700/1300

*

US

US Treasury Auction Result for 2 Year Note

2300/0900

***

AU

Judo Bank Flash Australia PMI

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